We All Scream for I Bonds

In the Dec. 24 issue of the Wall Street Journal, my colleague Joe Light wrote a story lamenting that investors would only be able to buy $5,000 in I Bonds – an inflation-indexed savings bond–in 2012, down from $10,000 in 2011.

Here’s what happened: In 2011, investors could buy $5,000 in paper bonds and $5,000 digitally. The paper bonds, however, were set to be eliminated in 2012 – but the limit on digital purchases was supposed to remain at $5,000. On Wednesday, Treasury pushed the digital limit up to $10,000, accounting for the disappearance of the paper bonds.

Treasury’s decision ensures that investors still have access to one of the best places to park cash, a move that, I’m sure, the folks in Joe’s story would applaud.